Private payrolls increase by 365,000 vs. 600,000 estimate

first_imgA worker wearing a protective mask and gloves assembles face shields at the Cartamundi-owned Hasbro manufacturing facility in East Longmeadow, Massachusetts, on Wednesday, April 29, 2020.Adam Glanzman | Bloomberg via Getty Images – Advertisement – Private job creation showed a sharp deceleration in October as the U.S. economy struggled against a resurgent coronavirus pandemic, according to a report Wednesday by ADP.Companies added 365,000 positions for the month, well below the 600,000 estimate from a Dow Jones economist survey. That was the lowest reported gain from ADP since July.The ADP estimate, done in conjunction with Moody’s Analytics, has varied widely from the government’s official nonfarm payrolls report, particularly during the pandemic. However, the upwardly revised 753,000 in September actually was higher than the Labor Department’s count of 661,000, whereas previous months’ reports were considerably lower than the government’s.- Advertisement – “The labor market continues to add jobs, yet at a slower pace,” Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement. “Although the pace is slower, we’ve seen employment gains across all industries and sizes.”The report comes two days before the more closely watched Labor Department tally.Economists expect that report to show growth of 530,000, which would take the total amount of positions brought back since May to nearly 12 million. The unemployment rate is expected to fall two-tenths of a percentage point to 7.7%.However, the gains only make up for a little more than half the 22 million positions lost in the first two months of the pandemic.Economists worry that job creation could slow amid a rise in Covid-19 cases, which increased by 86,507 on Tuesday to bring the pandemic total to 9.3 million, according to the Covid Tracking Project. More than 224,000 Americans have died from the virus and its complications.center_img From a sector perspective, services accounted for almost all the job creation, with 348,000. The hospitality industry, which took the biggest hit during the virus-related shutdown, added 125,000 jobs, while education and health services grew by 79,000 and professional and business services contributed 60,000.Of the 17,000 increase on the goods-producing side, construction and manufacturing each added 7,000 while natural resources and mining rose 3,000.Job creation was split among businesses in terms of size, with companies employing 50 to 499 employees leading with 135,000. Large businesses contributed 116,000 and small firms picked up 114,000.- Advertisement – – Advertisement –last_img read more

Govt encourages middle-income segment to increase spending to keep economy moving

first_imgRead also: Income gap expected to widen in economic crisisSeparately, Vice President Ma’ruf Amin said state funds were essential to ensuring a healthy economy, given that many in the private sector had been battered by the COVID-19 emergency.“The only funds that could move [the economy] are state funds; the private sector is currently idle,” Ma’ruf said as quoted by kompas.com.The senior cleric said as many as 9.6 million SME owners had received financial aid throughout the first phase of the program in September.The government had expected 12 million business owners to receive the aid by December, he added. A sense of safety and security should be reinstated during these uncertain times so the public feels comfortable going out and spending, while still adhering to health protocols, he said.He added that the government had prepared a number of incentives, including a credit program and a stimulus scheme for small and medium enterprises (SMEs) to improve domestic trade as many people had chosen to save their funds because of the ongoing coronavirus crisis.The government has provided monthly financial aid to workers earning less than Rp 5 million (US$340.25) per month to improve the public’s purchasing power.The funds – totaling Rp 600,000 – are transferred directly to the employees’ respective bank accounts every two months. Topics :center_img The government is encouraging the middle-income segment to spend more through online shopping platforms to help improve spending amid the economic downturn resulting from the COVID-19 pandemic.National economic recovery committee head Budi Gunadi Sadikin called on middle-income families to shop on their e-commerce platform of choice to help ensure a stable economy.“To friends who happen to be middle-class and have access to [smartphones] and e-commerce storefronts, don’t forget to spend to move the wheels of the economy,” Budi told a press conference at the Presidential Palace in Jakarta on Wednesday.last_img read more